02.26.20
Shadows Cast Over Reg BI Just Months Before Start
by: Brian Croce
The SEC's Regulation Best Interest (Reg BI) is slated to take effect in a little more than four months, but there are still plenty of fights left with respect to regulating the industry. In September, three months after Reg BI was approved, eight attorneys general filed a federal lawsuit challenging the rule, saying it doesn't sufficiently protect investors under the Dodd-Frank Wall Street Reform and Consumer Protection Act. The same month, a lawsuit similar in scope was filed by XY Planning Network, financial planning platform. The lawsuit's primary goal is to have Reg BI vacated "so we can start over and try to get a better rule in place," said Michael Kitces, XY Planning Network's co-founder. He would like a rule where all financial planning advice is subject to the RIA's fiduciary duty. The two lawsuits have been bound together since they're challenging the rule in similar ways, Kitces explained.
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